Claire’s and The Original Factory Shop near collapse, putting 2,550 jobs at risk

Claire's and The Original Factory Shop, both owned by Modella Capital, are on the verge of administration, potentially impacting 2,550 jobs across the UK. Modella, which recently acquired TG Jones (formerly WH Smith's high street arm), cites challenging high street conditions and declining pre-Christmas footfall as reasons for the insolvency proceedings. Kroll is expected to handle Claire's administration, affecting 1,350 jobs across 154 stores, while Interpath would oversee The Original Factory Shop's administration, putting 1,200 jobs at risk across 140 stores. The Original Factory Shop had already been struggling, reporting a £5.6m pre-tax loss earlier this year, despite a recent restructure and rent cuts. Modella claims weak consumer confidence, adverse government policies, and inflation contributed to the businesses' struggles.

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